The European Parliament Research Service recently published an in depth analysis report on Data flows, artificial intelligence and international trade: impacts and prospects for the value chains of the future for its Members.
Socio-economic effects of digital trade and artificial intelligence on EU industries Artificial intelligence and new digital technologies are transforming digital trade. They facilitate the development of new business models of trade and reduce the geographical barriers of economic transactions. Such transformations are quite useful for the small and medium enterprises.
Artificial intelligence is being adopted by both digital and non-digital sectors, but its adoption varies a great deal across countries, including within the EU. Data and information flow play a crucial role in digital trade by allowing personalization. Digital trade is not new, but it is taking new forms that are ushering a new phase of globalisation. So far digital trade mainly affected trade in goods, including through global value chains, though some service activities have already become more tradeable thanks to digital technologies.
The new phase of globalisation driven by artificial intelligence and new digital technologies is likely to do for services what the previous phase did for manufacturing: to vastly increase trade between advanced and emerging economies. This prospect raises important issues for domestic policies and trade policy.
The brief provides a legal analysis of existing rules in digital trade regarding the various components of artificial intelligence (‘AI’), in particular (personal and non-personal) data, computer code in the form of algorithms, and computing power (including cloud computing). To do so, the first part of this analysis will map various international trade rules that affect cross-border flows of data, computer code and computing power to determine their respective advantages and disadvantages. This will form the basis for the second part of the analysis, which will address the desirability and necessity of global rulemaking in this area.
The in-depth analysis discusses issues in trade in digitally deliverable services and the geopolitics of digital trade policy. Digitally deliverable services are becoming increasingly important for global value chains, both in terms of final products exported to other countries, and in terms of inputs embedded in manufactured goods.
The full in depth analysis is available : https://www.europarl.europa.eu/RegData/etudes/IDAN/2020/653617/EXPO_IDA(2020)653617_EN.pdf
Photo Credit : https://www.europarl.europa.eu/committees/en/webinar-on-data-flows-artificial-intelli/product-details/20201104WKS03061